15 March 2013 – Grand Plaza Hotel, Washington D.C., USA World Bank Forest Carbon Partnership Facility – Meeting No. 6 of the Carbon Fund The Republic of Congo ER-PIN Overview – Part of a Low Emissions Sustainable Development Perspective T h e
THE REPUBLIC OF CONGO – an overview Total Land Area: 342,000 km² Forested Land Area (%) 65% Forested Land Area (ha)) 22.47 million ha Parks and Reserves 3.5 million ha Annual Rate of Deforestation (ha) 17,000 ha Annual Rate of Deforestation (% loss) 0.08% Population 4 million Urban Population 62% Rural Populaitoan 38% Annual rate of urbanization 3% Total No. of Forest Concessions 13 million ha Annual Rate of Forest cover Loss of other Congo Basin Countries (1990-2000) ( Source: Report FRA FAO, 2005 Annual Rate of Forest cover Loss of other Congo Basin Countries (1990-2000) Angola 0,02% Central African Republic 0,10% Zambia 1,50% Rwanda 3,90% Burundi 9,00% Rep. of Congo 0,10% Camareoon 0,90% Dem Rep. of Congo 0,04% The ER-PIN for Rep. of Cong – an overview
Congolaise Industrielle des Bois (CIB) CIB Founded in1968 • 4 concessions • 1,3 millions ha certified FSC • 23,400 habitants and 890 employees Production volume 180,000 m 3 (2011) • • Export logs: 17%, Transformation : 83% • 2011 Revenues: € 39,6 millions CIB Donnor Partners (en M€): CIB Donnor Partners (en M€): •GTZ : Sustainable Forestry Managment € 0.7 mil •AFD : Sustainable Forestry Managment €1.3 mil •WCS/ITTO : Wilflife Fauna Managment €2 mil •FFEM : Agro-forestery €0.9 mil •WB Dev. Marketplace : Community Radio Partnerships with NGO & Institutes: TFT, WCS, FSC, LSE, CIRAD, Forest Peoples Program, PharmAccess The ER-PIN for Rep. of Cong – an overview
OLAM International Olam acquires CIB in 2011, The North Pikounda REDD+ project began at the same time Donnor Partners with OLAM (en M$): •USAID : Food Security $5 mil •Bill & Melinda Gates: Capacity Building $90 mil •IDH : 5,5 Enhanced Agriculture Productivity, market access $5.5 mil •DE Foundation: Arabica coffee regeneration $ 1.2 mil •IFC: Market access & small holder certifcation $2 mil NGOs & Partner Institutes of OLAM Technoserve, GIZ, ACDI / VOCA, CLUSA, Rainforest Alliance, Fairtrade, AMREF, WCS The ER-PIN for Rep. of Cong – an overview
CARBON CONSERVATION Carbon Conservation Carbon Conservation conducting forest carbon projects since 2006 Large scale Forest Carbon project development: Ulu Masen REDD+, North Pikounda REDD+, Aceh Indonesia Rep. of Congo 92,500 ha 750,000 ha Minding the Carbon Store, Kampar Carbon Reserve PT Wangsa Kaya Lestari Queensland Australiia Sumatra, Indonesia 47,000ha 16,000 ha 16,000 ha 30,000 ha 30,000 ha Project Project Pipeline Project Structuring Origination Business Assessment and Legal Development and Valuation Execution Project Development PD Validation, and Project Verification and Delivery Project Management Structuring, Acquiring, Brokering Commercialization Leveraging, Hedging and Trading and Securitization The ER-PIN for Rep. of Cong – an overview
The Congo’s Pilot Forest Carbon Project – North Pikounda REDD+ • World Class Avoided Planned Degradation Project • The Ministry of Forestry has worked since 2010 on REDD+ issues through the WB FCPF and UN REDD • The Pikounda Feasibility study was concluded in Oct of 2011 (Est. 2.9 – 5.6 million tCO 2 e over 20 years) • Carbon inventory work was conducted in Q4 2012 • Validation & Verification begins April 2013 Size 93,540 ha Harvested Area Harvested Area 55,000 ha 55,000 ha Project Type REDD+ (avoided planned deforestation and degradation) Standard VCS & CCBA Pre-Validation Status Est. of time of Credit Origination Q3 2013 Project Partners MDEFFE CIB-Olam Carbon Conservation Projects Creditng Period 20 years Projects Monitoring Period 30 years The ER-PIN for Rep. of Cong – an overview
ER-Program Area – 12 Million Hecatares • Staged Project activity to maintain opportunity to scale up • The ER-Program will begin with the North Pikounda REDD+ project in the Sangha Dept. • Emission reductions activity must integrate with spatial planning Northern Department Likouala Sangha Area of the ER Program 6.4 million ha 5.8 million ha Forest Concessions 3.5 million ha 3.3 million ha Forest Concession under Approved Forest Concession under Approved Management Plans 3.3 million ha 2.1 million ha Agriculture Development Activity within Approved Forest Management Areas (6%) ~ 198,000 ha ~ 126,000 ha Potential Agricultural & Agro Forestry Areas 2.2 million ha 2 million ha Influence of the PRONAR project 20,000 ha 50,000 ha Protected Areas 700,000 ha 500,000 ha Potential REDD+ Activity A/R, AD, IFM A/R, AD, IFM Threat of Forest Cover Loss High High The ER-PIN for Rep. of Cong – an overview
The PARTNERSHIP How the Partnership Roles and Experience will function Responsibilities •MEFDD / National Committee • Congo (MEFDD) : oversight, MRV, • Congo MDEFFE: Development and &National REDD Coordinator Baseline Scenario, Spatial application regulated forest will provide national policy Planning; contribution of carbon management, REDD+ First mover guidance and program expertise in Africa supervision • CIB/OLAM : Project Implementer • CIB/OLAM: decades of in country •Transparency & Third Party forestry experience, assisted with •Administration of the program; Accountability the implementation of sustainable follow-up and evaluation of the forestry management, co- forestry management, co- •The program will be an •The program will be an projects projects generation, implementation of aggregation of various • Carbon Conservation : Technical reduced impact logging under activities supported by Carbon Expertise FSC™ guidelines; large scale diversified project owners project development and (private, public, community, management NGO, etc) • Carbon Conservation: Large scale forest carbon projects The ER-PIN for Rep. of Cong – an overview
Phase One: Potential REDD+ Crediting Activities of the ER-Program Methodology • Integration with a pre-compliance Accounting methodology supported by the FCPF methodology Facility • Transparent carbon accounting & third party auditing • Application of globally accepted social & environmental best practices First Phase focus : 2 sectors that bring the most immediate emission reductions and benefits to the communities 1. Agro Forestry 2. Forestry • Revival of community based cocoa • 100% Implementation Concession wide Forest Management Panning • Incorporation with 1 million hectare plantings • Reduced Impact Logging • Rubber tree plantations for • Optimization of road communities and industry • Increase the minimum harvest diameters • Community reforestation • Environmentally sensitive rotation ages • Stop Logging Activity (i.e. North Pikounda) • Development of new markets for sustainable local products (wooden houses and other Long term hardwood (LtHw) products) The ER-PIN for Rep. of Cong – an overview
Phase Two – ER-Program Activities that may Credit Generating MRV • Integration with a national / regional baseline • Seek to improve level of technology used for monitoring • Domestic coordination of MRV with local ground truthing • MRV for benefit sharing as well 3. Energy rgy ing 4. Mining • Domestic Energy Savings Scheme • Domestic Energy Savings Scheme • Reforestation of areas of • Reforestation of areas of exploitations • Renewable Energy • Spatial planning management to • Co-Generation from bio-waste conserve forests • Manure/ waste recovery • Support of green and low • Charcoal to Clean Energy emission mining • Energy Sector Reform Second Phase focus : Shift to include more then northern part of the Country and attempt to broaden the scope of emission reduction activity. The ER-PIN for Rep. of Cong – an overview
POTENTIAL CREDIT ORIGINATION Estimated 3.9 million tCO 2 e / year • 20-30 Million 1. Agro Forestry REDD+ & ERs / 10 years Afforestation • 20-50 Million ERs 2. Forestry over 20-100 years REDD+ & Afforestation • Origination of PES 3. Energy Clean energy options credits may be possible • Origination of PES credits 4. may be possible Mining Low emission alternatives The ER-PIN for Rep. of Cong – an overview
Option 1: The Republic of Congo signs an ERPA with the FCPF Carbon Fund The Government of the Republic of Congo Monetises the Credits Carbon Fund of the FCPF $ CO 2 Republic of Congo CO 2 Purchasers of CO 2 $ $ $ Agency of Execution and Administration of Agency of Execution and Administration of Emission Reduction Program CIB-OLAM $ $ Carbon Carbon Carbon Carbon Carbon Carbon Carbon Carbon Project 1 Project 2 Project 3 Project 4 The ER-PIN for Rep. of Cong – an overview
Option 2. - CIB-OLAM signs and ERPA with the Carbon Fund of the FCPF The Administrator of the ER-Program Monetises the Credits Republic of Congo Carbon Fund of the FCPF Carbon Fund of the FCPF CO2 $ $ CO 2 Administrator of the ER Program Administrator of the ER Program Purchasers of Purchasers of CO 2 CIB-OLAM CO 2 $ $ $ Carbon Carbon Carbon Carbon Carbon Carbon Carbon Carbon Project 1 Project 2 Project 3 Project 4 The ER-PIN for Rep. of Cong – an overview
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